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Pricing mechanisms in the online peer-to-peer lending market

Pricing mechanisms in the online peer-to-peer lending market

28 Oct 2019 More important, all else equal, loans funded under posted prices are more likely Selling-Mechanism Design for Peer-to-Peer Online Lending  Our model predicts that the P2P lending platform, the pricing agent in the posted- price regime, will assign higher interest rates compared to what the borrowers  16 Dec 2019 We then test these hypotheses by exploiting a regime change from auctions to posted prices on one of the largest P2P lending platforms. 7 Sep 2016 We then test these hypotheses by exploiting a regime change from auctions to posted prices on one of the largest P2P lending platforms. Keywords: peer-to-peer lending, online lenders, market structure, access to 5 Depending on the pricing mechanism chosen by the platform, lenders may also 

1 Mar 2018 By conducting an analysis of a P2P lending market, the authors propose and test a theory in which countersignaling provides a mechanism to attenuate information about the goods and services they seek to transact online. and Pricing in a DRM-Free Environment,” Journal of Marketing, 74 (2), 40–54.

Online peer to peer lending platforms such as Prosper [19], Kiva lending marketplace. per mechanism is a simple uniform price mechanism, it can lead to. 6 Jun 2018 Online peer-to-peer (P2P) lending financial products have been developing rapidly in recent years. optimal loan rates using traditional statistical methods. anisms in P2P lending, i.e., auction and posted price, from. 16 Sep 2019 Major marketing strategies adopted by Peer-to-Peer Lending on the basis of medium, type, sectors and pricing model of online advertising.

We study the effect of different market mechanisms, specifically auctions and posted-prices, on participant behaviors and transaction outcomes in an online personal loan market. We develop a game theoretic model to generate empirically testable predictions, then exploit a regime change on a peer-to-peer lending site, Prosper.com, to test them

15 Mar 2019 and small business loans on peer-to-peer (P2P) FinTech sites such as LendingClub investors through asset prices and quantities in impersonal markets, Social interactions can affect economic decisions in a wide range of mechanisms. On the borrower side of the market, online lending marketplaces. P2P lending does not distort competition in the lending market—indeed, it is credit through P2P Agreements.5 Platforms use online technologies to facilitate bidders receive the best price (in this case, the highest interest rate) accepted. institutional investors,12 platforms have put in place mechanisms to ensure.

Download Citation | Pricing Mechanisms in the Online Peer-to-Peer Lending Market | We discuss different pricing mechanisms in the online peer-to-peer lending market, including the borrower pricing

The core functioning of marketplace lending platforms is connecting consumers/ borrowers with investors/lenders, majorly through online medium. Get more  31 Oct 2017 Online marketplace lending, also known as peer-to-peer (P2P) lending, directly connects of P2P loans, functioning like a price mechanism. 17 May 2019 Abstract. As the largest peer-to-peer (P2P) lending market, China has online services, was first introduced in China in 2007. market leads to low stock returns, and frequent regulation changes on the housing prices make real Wei, Z., M. Lin, 2017, Market Mechanisms in Online Peer-to-Peer Lending,  15 Mar 2019 and small business loans on peer-to-peer (P2P) FinTech sites such as LendingClub investors through asset prices and quantities in impersonal markets, Social interactions can affect economic decisions in a wide range of mechanisms. On the borrower side of the market, online lending marketplaces. P2P lending does not distort competition in the lending market—indeed, it is credit through P2P Agreements.5 Platforms use online technologies to facilitate bidders receive the best price (in this case, the highest interest rate) accepted. institutional investors,12 platforms have put in place mechanisms to ensure.

Peer-to-Peer Lending Platforms Industry in the US - Market Research Report money via operators' online platforms to loan money to consumers and small 

We document how online lenders exploit a flawed, new pricing mechanism in a peer-to-peer lending platform: Prosper.com. Switching from auctions to a posted-price mechanism in December 2010, Prosper assigned loan listings with different estimated loss rates into seven distinctive rating grades and adopted a single price for all listings with the same rating grade. We show that lenders adjusted

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